Regulatory Alerts2024-09-01
Circular No. 01/2023 on the Payment Procedures for Premiums, Indemnities and Other Fees, Issued Pursuant to Regulation No. 003/2023 Establishing the Deposit and Resolution Guarantee Fund
The Bank of the Republic of Burundi issued Circular No. 01/2023 to establish payment procedures for premiums, indemnities, and other fees owed by credit institutions and microfinance institutions to the Deposit and Resolution Guarantee Fund (FGDR). The regulation mandates an annual premium of 0.2% on average eligible monthly deposits, a complementary 0.05% premium for non-performing loans exceeding sector averages, and an entry fee formula for new members, alongside a 0.5% daily late payment penalty. Additionally, it sets the FGDR's coverage limit at 3,000,000 Burundi Francs per depositor, requires the first 2024-related contribution to be paid by March 31, 2025, and specifies that the circular takes effect upon publication in the Official Bulletin and on the central bank's website.